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OYO Geospace Shares Plunged: What You Need to Know

Is this meaningful or just another movement?

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of OYO Geospace(Nasdaq: OYOG) fell 10% today after the company released earnings.

So what: For the fiscal fourth quarter, OYO Geospace reported $32.8 million in revenue and $3.6 million in net income, or $0.56 per share. Analysts' expectations were much higher, however, expecting $41.9 million in revenue and $1.25 in earnings per share.

Now what: An earnings miss is never great for a stock, but this miss was by such a wide margin I'm surprised the stock hasn't fallen further. For the full fiscal year, revenue did grow by 35% and net income was up 111% so it isn't like the company is floundering in the current environment. Management pointed to normal variability in earnings for the weak quarter and said that backlog remained healthy.

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